Some you win....
Electronic trading group Getco LLC last week secured victory over a former trader who had argued he was due $100m in compensation from the firm.
The Wall Street Journal reports that an arbitration panel convened by the Financial Industry Regulatory Authority denied claims of unpaid compensation and other damages sought by Jian 'Jeffrey' Yuan, who worked for Getco from 2000 until 2010, when he was terminated, according to a legal filing.
The Finra panel did admonish Getco, however, for 'shabby' documentation of Yuan's compensation history, and denied the trading firm's request to have him pay its legal fees.
In the meantime, Reuters reports that bankers' pay needs to be curbed further to reflect the risk of a bank failure many years after a bonus has been awarded, the Bank of England (BoE) said before the annual bonus season begins next month.
The European Union has already introduced curbs on bankers' bonuses after huge payouts were criticised for helping to create the climate that led to the financial crisis in 2008. Bank shareholders, too, expressed dismay at large bonuses for bank employees despite poor returns.
Finally, The Wall Street Journal also reports that the early warning shots are being fired about the fourth-quarter earnings for Wall Street.
Both Nomura’s Glenn Schorr and Wells Fargo’s Matthew Burnell reduced their expectations for the last three months of the year.
'October was decent, but November has slowed given the hurricane, election, and the U.S. fiscal cliff', Schorr wrote. 'With the holidays coming up, we are not expecting a big pick-up in activity through the end of the year'.
Finra Panel Denies Getco Trader's $100 Million Claim Against Firm (subscription required)
Wall Street Earnings Likely Hurt by Tough November (subscription required)